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TAW-85138  /  ARRIS Group Inc. (State College, PA)

Petitioner Type: Workers
Impact Date: 03/11/2013
Filed Date: 03/12/2014
Most Recent Update: 08/19/2015
Determination Date: 08/19/2015
Expiration Date: 08/19/2017

DEPARTMENT OF LABOR

Employment and Training Administration

TA-W-85,138

ARRIS GROUP INC.
INCLUDING ON-SITE LEASED WORKERS FROM XEROX
STATE COLLEGE, PENNSYLVANIA

Notice of Revised Determination
After Statutory Reconsideration

As required by the Trade Adjustment Assistance Reauthorization
Act of 2015 (TAARA 2015), which was enacted as Title IV of the
Trade Preferences Extension Act of 2015, Public Law No. 114-27,
section 405(a)(1)(A), the investigation into this petition was
reopened for a reconsideration investigation to apply the
requirements for worker group eligibility under chapter 2 of
title II of the Trade Act of 1974, as amended by the TAARA 2015,
to the facts of this petition (statutory reconsideration).

The initial investigation, initiated March 12, 2014, resulted in
a negative determination, issued on April 17, 2014, that was based
on the firm not producing an article. The determination was
applicable to workers and former workers of ARRIS Group Inc.,
including on-site leased workers from Xeros, State College,
Pennsylvania (herein known as “ARRIS”). The workers’ firm is
engaged in activities related to the supply of research and
development services for telecommunication equipment. The
subject worker group includes on-site leased workers from Xerox.

Based on information reviewed during the reconsideration
investigation, the Department of Labor determines that a shift
in services to a foreign country contributed importantly to the
workers’ separations at the subject firm.

Section 222(a)(1) has been met because a significant number or
proportion of the workers in such workers’ firm have become
totally or partially separated, or are threatened to become
totally or partially separated.

Section 222(a)(2)(B) has been met because the workers’ firm has
shifted to a foreign country the supply of a service like or
directly competitive with the service supplied by the workers
which contributed importantly to worker group separations at
ARRIS.

Conclusion

After careful review, I determine that workers of ARRIS Group
Inc., including on-site leased workers from Xerox, State College,
Pennsylvania, who are engaged in activities related to the
supply of research and development services for telecommunication
equipment, meet the worker group certification criteria under
Section 222(a) of the Act, 19 U.S.C. § 2272(a). In accordance
with Section 223 of the Act, 19 U.S.C. § 2273, I make the following
certification:

"All workers of ARRIS Group Inc., including on-site leased workers
from Xerox, State College, Pennsylvania who became totally or
partially separated from employment on or after March 11, 2013,
through two years from the date of certification, and all workers
in the group threatened with total or partial separation from
employment on the date of certification through two years from the
date of certification, are eligible to apply for adjustment assistance
under Chapter 2 of Title II of the Trade Act of 1974, as amended.”

Signed in Washington, D.C., this 19th day of August, 2015


/s/Hope D. Kinglock
______________________________
HOPE D. KINGLOCK
Certifying Officer, Office of
Trade Adjustment Assistance




DEPARTMENT OF LABOR
Employment and Training Administration
TA-W-85,138

ARRIS GROUP INC.
INCLUDING ON-SITE LEASED WORKERS FROM XEROX
STATE COLLEGE, PENNSYLVANIA

Negative Determination Regarding Eligibility
To Apply For Worker Adjustment Assistance
And Alternative Trade Adjustment Assistance

In accordance with Section 223 of the Trade Act of 1974, as
amended ("Act"), 19 U.S.C. § 2273, the Department of Labor herein
presents the results of an investigation regarding certification of
eligibility to apply for worker adjustment assistance.
Workers of a firm may be eligible for worker adjustment
assistance if they satisfy the criteria of subsection (a) and (b)
of Section 222 of the Act, 19 U.S.C. § 2272(a) and (b). For the
Department of Labor to issue a certification for workers under
Section 222(a) of the Act, 19 U.S.C. § 2272(a), the following three
criteria must be met:
(1) The first criterion (set forth in Section 222(a)(1) of the
Act, 19 U.S.C. § 2272(a)(1)) requires that a significant
number or proportion of the workers in such workers' firm, or
an appropriate subdivision of the firm, have become totally or
partially separated, or are threatened to become totally or
partially separated
(2) The second criterion (set forth in Section 222(a)(2) of the
Act, 19 U.S.C. § 2272(a)(2)) may be satisfied in one of two
ways:
(A) Increased Imports Path:
(i) sales or production, or both, at the workers' firm must
have decreased absolutely, AND
(ii) imports of articles like or directly competitive with
articles produced by such firm or subdivision have
increased; and
(iii) the increase described in clause (ii) contributed
importantly to such workers' separation or threat of
separation and to the decline in the sales or
production of such firm or subdivision.

(B) Shift in Production Path:
(i) there has been a shift in production by such workers'
firm or subdivision to a foreign country of articles like
or directly competitive with articles which are produced
by such firm or subdivision; and
(ii)(I) the country to which the workers' firm has
shifted production of the articles is a party to a free
trade agreement with the United States;
(II)the country to which the workers' firm has
shifted production of the articles is a beneficiary
country under the Andean Trade Preference Act, African
Growth and Opportunity Act, or the Caribbean Basin
Economic Recovery Act; or
(III)there has been or is likely to be an increase in
imports of articles that are like or directly
competitive with articles which are or were produced by
such firm or subdivision.

For the Department to issue a secondary worker certification
under Section 222(b) of the Act, 19 U.S.C. § 2272(b), to workers of
a Supplier or a Downstream Producer, the following criteria must be
met:
(1) a significant number or proportion of the workers in the
workers' firm or an appropriate subdivision of the firm
have become totally or partially separated, or are
threatened to become totally or partially separated;

(2) the workers' firm is a Supplier or Downstream Producer to
a firm that employed a group of workers who received a
certification of eligibility under Section 222(a) of the
Act, 19 U.S.C. § 2272(a), and such supply or production
is related to the article that was the basis for such
certification; and

(3) either
(A) the workers' firm is a supplier and the component parts
it supplied to the firm described in paragraph (2)
accounted for at least 20 percent of the production or
sales of the workers' firm; or
(B) a loss of business by the workers' firm with the firm
described in paragraph (2) contributed importantly to the
workers' separation or threat of separation.


Section 222(c) of the Act, 19 U.S.C. § 2272(c), defines the
terms "Supplier" and "Downstream Producer."
The investigation was initiated in response to a petition
filed on March 11, 2014 on behalf of workers of ARRIS Group Inc.,
including on-site leased workers from Xerox, State College,
Pennsylvania. The workers' firm is engaged in activities related
to the supply of research and development services for
telecommunication equipment.
The petitioners alleged that worker separations were caused
by a shift of services to a foreign country. During the course of
the investigation, information was collected from the workers'
firm.
The investigation revealed that ARRIS Group Inc., State
College, Pennsylvania, does not produce an article within the
meaning of Section 222(a) or Section 222(b) of the Act. In order
to be considered eligible to apply for adjustment assistance under
Section 223 of the Trade Act of 1974, the worker group seeking
certification (or on whose behalf certification is being sought)
must work for a "firm" or appropriate subdivision that produces an
article. The definition of a firm includes an individual
proprietorship, partnership, joint venture, association,
corporation (including a development corporation), business trust,
cooperative, trustee in bankruptcy, and receiver under decree of
any court.
During the investigation, the Department of Labor obtained
information that revealed that the workers' firm did not produce an
article; rather, the workers' firm supplied services related to
research and development.
With respect to Section 222(b)(2) of the Act, the
investigation revealed that ARRIS Group Inc., State College,
Pennsylvania is not a Supplier or Downstream Producer to a firm
that employed a group of workers who received a certification of
eligibility under Section 222(a) of the Act, 19 U.S.C. § 2272(a).
In order for the Department to issue a certification of
eligibility to apply for alternative trade adjustment assistance
(ATAA), the worker group must be certified eligible to apply for
trade adjustment assistance (TAA). Since the workers are denied
eligibility to apply for TAA, the workers cannot be certified
eligible for ATAA.

Conclusion

After careful review of the facts obtained in the
investigation, I determine that all workers of ARRIS Group Inc.,
including on-site leased workers from Xerox, State College,
Pennsylvania, engaged in activities related to the supply of
research and development services are denied eligibility to apply
for adjustment assistance under Section 223 of the Trade Act of
1974, and are also denied eligibility to apply for alternative
trade adjustment assistance under Section 246 of the Trade Act of
1974.
Signed in Washington, D.C. this 17th day of April 2014.

/s/Michael W. Jaffe
______________________________
MICHAEL W. JAFFE
Certifying Officer, Office of
Trade Adjustment Assistance